Government Loan for Sheep Farming in India

Introduction: Hello livestock farmers today we will have an insight into the Government loans for the sheep farming business. Sheep farming or sheep husbandry is among the traditional business and occupations of the people of some countries around the world.  Raising or Rearing sheep will contribute a lot to the economy by providing local employment and import and export. The main purpose of sheep and Goat farming is to produce enough meat and wool for the increasing population across the world. It gives a dependable source of income to the shepherds through the sale of wool and animals. One should utilize subsidies and Government loans for sheep farming businesses in India.

A guide to Government Loan for Sheep Farming in India

Sheep meat is not only very tasty but also nutritious and popular with all people throughout the world. If you are looking for the most profitable business, next to sheep farming can be a great idea as it is a good source of income and for eradicating poverty from the barren, desert, semiarid and mountainous areas.

Loan and Subsidy for Sheep Farming Business.
Loan and Subsidy for Sheep Farming Business.

The advantages of sheep farming are;

  • Sheep do not require expensive buildings to house them and on the other hand, require less labor than other kinds of livestock.
  • The foundation stock is cheap and the flock can be multiplied rapidly.
  • These are an economical converter of grass into meat and wool.
  • Sheep will eat different kinds of plants compared to other kinds of livestock and this makes them excellent weed destroyers.
  • The production of wool, meat, and manure provides three different sources of income to the shepherd and the business of Sheep farming requires less labor as compared to any other livestock farming business.
  • The structure of their lips helps them to clean grains lost at harvest time and so convert waste feed into profitable products.
  • Frequently sheep give birth to kids and therefore, the size of your herd will be large within a short period.
  • Sheep eat different types of plants, not like any other kind of livestock animal. Hence, you can use them for cleaning unwanted plants from the garden or field. They can survive by consuming low-quality grass and turn into meat and wool.

What are we waiting for? Let’s get into sheep farming government loan.

NABARD Infrastructure Development Assistance (NIDA)

Loan assistance is made obtainable through NABARD Infrastructure Development Assistance (NIDA) to supplement the RIDF (Rural Infrastructure Development Fund) window, in case of State Govts., which have strong corporations and can borrow on their financial strength, with an objective to fast-track the infrastructure development. To facilitate the formation of additional processing infrastructure or modernization of existing processing facilities, financially strong milk unions and milk marketing federations can avail of the above facility. Further, livestock development boards having good cash flows can borrow for augmenting the breeding infrastructure.

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Modern methods of Sheep Farming

Proper Planning

The good thing is that starting a commercial sheep farming business is easy. First, always do a good plan before starting any business. Then, follow it accordingly and always go through some step-by-step procedure.

Choose a Suitable Farm Location

Then select a suitable location to start an important sheep farm. Take care of the necessary facilities for raising sheep. There should be the availability of a good clean and fresh water source, an adequate amount of greens, good medication, transportation, and proper marketing are the required facilities for starting a commercial sheep farming business. Therefore, one should always keep in mind the above things when selecting land for business.

Select quality breeds

You must try to purchase quality breeds from famous farms or breeders. There are various sheep breeds obtainable around the world. But, you must know that all of those breeds are not suitable for farming in all areas. On one hand, some breeds are appropriate for commercial meat production and others are suitable for wool production. Hence, choose suitable breeds as per the desired production purpose. Local breeds could be considered.

Few popular sheep breeds for sheep farming;

  • Bannur
  • Bellary
  • Cheviot
  • Deccani
  • Hassan
  • Merino
  • Ramboullet
  • South Down
Basic housing for sheep farming

Sheep don’t require high-end or expensive housing. They are happy if you fulfill their essential housing needs. For commercial production, you have to create a separate and suitable house for them. Their house must be suitable enough to keep them safe from adverse weather and harmful predators.

Good sheep housing or making a shelter for sheep is important. A shelter keeps the animal free from all types of adverse weather. Housing or fencing cost for rising in open fields is low. You can easily create a shelter for your animals by fencing a certain area with a height of one meter. But during the winter and rainy season, you should have to keep your animals inside a house. Generally, adult sheep need about 20 square feet of floor space. You can simply keep 5 sheep in a house 10 feet long and 10 feet wide. Maintain the roof at least 6 feet high from the floor. Always maintain the floor and total house clean and dry. Make a proper ventilation system inside the house, so that fresh air and light can simply enter the house.


For proper development and maximum production, good feeding of sheep is a must. High-quality food keeps them healthy, and diseases free. Therefore, always try to feed sheep high-quality and nutritious foods. Generally, all types of grasses, plants, and corn are their favorite food. Besides the above points, always give sheep an adequate amount of clean and fresh water as per their demand.

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Providing high-quality and nutritious foods maintains the animal’s healthy, diseases free, and productivity. Thus, always try to feed your animals fresh and nutritious food. Normally, sheep eat all types of green grasses, plants, and almost everything edible they find in front of them. Along with providing good food, always give them a sufficient amount of clean and fresh water.

Strong Fence

You must create a suitable fence around the pasture if you are allowing them to graze on the pasture. The fence should be strong enough, so that they can’t go out, and stay safely inside. If the fence is good then it will help to keep all kinds of predators out. Making a woven fence is advised.

Care and management

You will want to provide good care and management to get the maximum profitability of your farm. Broadly, you will want to procure quality breeds and provide good housing and food. Additionally, maintain the cleanliness of the farm. In addition to that, provide the right vaccination to your sheep. If you notice any sick sheep, separate the animal promptly and give proper treatment.

To get the optimum profit, always tap the local market of the products. It helps to maintain the transportation cost minimum. Additionally, always think about the other marketing avenues to obtain the maximum profits from your sheep farming business.

Economic importance of sheep farming

Sheep is a very important livestock species. They contribute greatly to the agrarian economy, especially in the arid or semi-arid and mountainous areas where crop and dairy farming are not economical.

Importance of Sheep Farming.
Importance of Sheep Farming.

Sheep farming plays a very important role in the livelihood of a large percentage of small and marginal farmers and landless laborers. Several rural-based industries use wool and sheepskins used as raw materials. Sheep manure is a very important source of soil fertility too. Additionally, the production of wool, meat, and manure give three different sources of income per year.

While lamb dominates, particularly in developed economies, mutton that comes from adult sheep also generally enjoys a strong demand led by Muslim groups and other consumers with more limited purchasing power. China inevitably dominates the global market, accounting for about 27% of the total. There are then several smaller markets with a market share of 3 to 4% of the global total. Sudan is the second largest followed by the UK. Also, the Middle East/North Africa caters to around 19% of the total global sheepmeat market.

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Tips for profitable sheep farming
  • For better profits, you should follow the rules of modern and scientific sheep rearing.
  • Selection and purchasing sheep, pregnancy, lamb care, weaning, housing, and shelter managing, culling, keeping records, identification, dipping, health management, etc play a very crucial role in the commercial sheep farming business.
  • Must choose a healthy sheep breed and take some extra care for sheep feeding.
Financial assistance or Government loan for sheep farming

A loan from banks with a refinance facility from NABARD is obtainable for starting sheep farming. For obtaining a bank loan, the farmers must apply to the nearest branch of a Commercial, cooperative, Regional Rural Bank, or small finance bank, in their area in the prescribed application form which is obtainable in the branches of financing bank. The Technical officer attached to or the Manager of the bank can help or give guidance to the farmers in preparing the project report to obtain a bank loan.

Eligibility for Sheep farming loan

  • The selected breed must be suitable for farming, and easily available at a reasonable cost.
  • There must be sufficient grazing facilities and accommodation to house the animals.
  • Good quality drinking water must be available.
  • Veterinary assistance should be easily and readily obtainable.
  • There must be a good demand for mutton, wool, leather, and other sheep products and assured marketing facilities.
  • The farmer must preferably be a member of a co-operative sheep rearing society or association, which would be able to extend different facilities to its members and assist the bank in the identification of borrowers, in disbursement, supervision, and recovery.

Sanction of Bank Loan and its Disbursement for sheep farming

Bank Loan for Sheep Farming.
Bank Loan for Sheep Farming.

After ensuring technical feasibility and financial viability, the scheme could be sanctioned by the bank. The loan is disbursed in phases against the creation of specific assets such as the construction of sheds, and the purchase of equipment and animals. The end use of the loan is then verified and constant follow-up is done by the bank.

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Outlay – The outlay of the project depends on the local conditions, unit size, and the investment components included in the farming. Prevailing market prices and costs may be considered to arrive at the outlay.

Margin Money – Margin depends on the category of the borrowers and can range from 10% to 25%.

  • Loans up to Rs.1 lakh – Nil
  • Loans above Rs.1 lakh – 15-25%

Interest Rate – Banks are free to decide the interest rates within RBI guidelines. Though, for working out the financial viability and bankability of the model project, the rate of interest is assumed at 12.00% p.a.

Security – Security will be as per RBI or NABARD guidelines issued from time to time.

For loans up to Rs.1,00,000/- Hypothecation of assets created out of our finance.

For loans above Rs.1,00,000/- Hypothecation of crops or assets created out of our finance and Mortgage of landed properties

Repayment period – The bank loan is to be repaid in 5 years with a gestation period of 12 months by half-yearly/yearly installments from the sale proceeds of progeny.

Repayment of the loan – The loan repayment is determined, based on the gross surplus generated in the farming project. Generally,  the repayment period of a loan for sheep farming is 6 to 8 years.

Insurance – The animals and other assets (shed, equipment) can be insured.

Profitable sheep farming business

Sheep farming is profitable because;

  • First of all, you can start the sheep business with a small investment and space. The sheep business doesn’t demand huge capital in starting.
  • The sheep business requires less labor for daily maintenance and care. So, you can run the farm with less working capital investment.
  • Sheep could give birth to kids frequently. Thus, you can create a large size herd within a short period.
  • Sheep need less space for living. Even you can raise sheep with other livestock animals.
  • Additionally, you don’t want to build expensive housing for the sheep. So, it allows you to maintain costs early.
  • Sheep eat different kinds of plants and you don’t need to provide high-quality feeds all the time.
  • Sheep are hardy animals and they can adapt to almost all types of environments. Thus, you can raise sheep in a wide range of temperate climates, including arid zones.
  • Lastly, the products you get from sheep-like meat, wool, and milk have high demand in the market. Therefore, sheep farming is a commercially lucrative business for entrepreneurs who want to start a livestock business.

That’s all folks about government loans for sheep farming business in India. You may be interested in How to Start a Goat Farming Business in India.


If you live in India and plan to avail sheep farming subsidy, the above article might be helpful to some extent.


  1. Can you please give me NABARD VISHAKHAPATNAM District office.


    REGARDS K. S. N. Raju


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